Actually, you can calculate it yourself!
post by Chloe Chan
by Chloe Chan
Jan 19, 2021 Post at 2:18 AM
After four interest
Therefore, the public generally believes that this is a good time to buy property, so a large number of people take this opportunity to apply for mortgage loans to buy houses.
However, due to this, many banks have begun to tighten lending conditions. In addition to CCRIS/CTOS records, there is also a very critical DSR that determines the probability and amount of loan approval.
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What is DSR?
DSR (Debt Service Ratio), also known as debt repayment ratio in Chinese, is the ratio of personal total debt to net income. It reflects the applicant’s personal debt repayment ability.
DSR calculation = Total debt*/Net income x 100%
*Note: The mortgage you appli for will also be includ in the calculation
The DSR standards adopt by Brazil Phone Number List various banks in my country when approving mortgages vary, with the most common being 70% of net income. Therefore, even if your income is high, if your debt is also high, the chances of your loan being approv are low.
Actual situation reference
After ducting EPF, EIS, SOCSO Afghanistan Phone Number List and various allowances, Ah Hua’s net income is RM4000 per month. His only debt is the car loan that nes to be repaid RM1000 per month.
According to the bank’s algorithm that only approves 70% DSR, RM4000 x 70% = RM2800, which means that Ahua can only have a maximum total debt of RM2800 per month.
RM2800 minus RM1000 of car loan leaves RM1800. From this, we can conclude that the monthly payment for the home loan appli by Ah Hua must not exce RM1800.
If Ah Hua also has other debts, such as PTPTN of RM250 per month, then his monthly mortgage payment cannot exceed RM1550.
